Ashford W. Meikle, Staff Reporter
Azan and Lake
THE BIDDING process for Caymanas Park has taken a dramatic twist with a decision by the Government to bounce the submitted proposals by advising the parties to return to the drawing board, a source close to the bid process told the Financial Gleaner.
"They have to go back to the drawing board," the source revealed. In doing its due diligence study, the Government went through the bids with a fine toothcomb and apparently were unsatisfied. It is concerned, said the source, that the bidders will not be able to complete their ambitious plans.
"They are quite costly proposals ... the Government is not satisfied that they would be able to pull it off completely." Two bids were submitted for Caymanas Park in June this year. Richard Azan
partnered with Supreme Ventures and Magna Entertainment Corporation (the largest operator of North American racetracks) proposing to invest US$55 million. That proposal intends to provide:
A family fun centre
Simulcast transmission
Luxury sky boxes
Bingo Hall
Live concerts
Gaming lounges
Parking for almost 2000 cars
At the time Mr. Azan, commenting on a suggestion to demolish the existing structure said, "We don't think it makes sense to tear down the existing structure and build a concrete jungle."
The second bid, by Horsemen Limited, saw that entity submit a J$1.6 billion proposal to the NIBJ in July of this year. Horsemen Limited consists of Richard Lake, Michael Lake, Phillip Feany, Dr. Paul Wright, Paul Hanworth, Spencer Chung, Clovis Metcalf, Neville Rhone, Lakeland Farms and Philip Liu.
EXTENSION ON BID
Its plan is to redevelop the almost 200-acre race track and add a 50,000-square foot entertainment complex to the infrastructure. As well as the entertainment complex, there are plans to open a 50-room hotel. There are further plans for gaming rooms operated by Michelle and Ruth Hussey and a cinema run by the Palace Amusement Company.
There are also plans to revive the Cactus nightclub. The bid is being done under the auspices of the National Investment Bank of Jamaica (NIBJ), the state agency responsible for the disposal of the country's assets. In fact, the awarding of the bid should have been made a month ago. But the Government has asked the bidders for an extension after the four month bond expired.
The president of the NIBJ, Rex James, did not reply to several calls made to his office or to an email sent to him but a source at the bank informed the Financial Gleaner "I am not sure the president would answer questions on that ... if anything you need to speak to the minister responsible for that contact Minister Jackson."
The divestment of the racetrack falls under the portfolio of the Minister of State in the Ministry of Finance and Planning, Mr. Fitz Jackson.
The Financial Gleaner was unable to get an answer from the minister's office. Contacted, his assistant said, "Minister Jackson has left for the day ... I'll take your number and pass it on." Pressed to provide an email to have the questions forwarded, the assistant refused.
UNANSWERED QUESTIONS
"I can't give out the email address. I'll have to ask the minister if I can divulge his email address," was the flat response. The source indicated that the Government had originally requested an extension of its decision from the bidders.
In fact, it appears that the Govern-ment is actually studying an alternative proposal mooted by Howard Hamilton. That proposal actually calls for the construction of a new racetrack at a different location. According to the source the Government would prefer a proposal showing an additional racetrack at a different location.
Whatever the decision, those involved in the bidding process are remaining quiet about the issue. "I don't understand why it is taking so long," mused one of the bidders, Richard Lake, in an interview with the Financial Gleaner. Mr. Lake was unable to provide details on the process since he was unaware of any decisions being taken. "Well, I am confident that we submitted an excellent bid ... our partners are proven performers. Anything is possible. All I can say is that our bid met their criteria," he said.
Supreme Ventures, which partnered with Mr. Azan, holds a similar position. "We honestly don't know why a final decision hasn't been taken," said Supreme Venture's Ian Levy. "And," he emphasised, "I am not going to speculate why." The Financial Gleaner was advised that Supreme Ventures executive, Paul Hoo, was off the island.
The horse racing industry in Jamaica is estimated to employ about 12,000 people. Caymanas Park was established in 1959 and covers 196 acres. Caymanas Track Limited, which directly employs 90 full-time employees, 41 contract staff and 301 part-time employees, operates Caymanas Park. It is estimated that the track has a turnover of about $3 billion.
